The government has clarified its position regarding tax exemption rebates for People with Sisabilities (OKU) in the B40 and M40 categories who intend to purchase motor vehicles.
Deputy Finance Minister II, Steven Sim Chee Keong, explained that at present, there are no immediate plans to introduce such rebates. However, he emphasized the need for a comprehensive review and examination of this proposal.
From an income tax perspective, Steven Sim believes that OKU individuals in the B40 and M40 categories should qualify for a tax exemption rebate of RM400 if their taxable income is below RM35,000.
Additionally, he highlighted that expenses incurred for purchasing basic support equipment would be eligible for a tax deduction of up to RM6,000. Furthermore, if registered with the Department of Social Welfare as a person with disabilities, an additional tax deduction of RM6,000 can be claimed.
During a session at the Dewan Rakyat (House of Representatives), responding to a question from Senator Isaiah Jacob, Steven Sim revealed that there are currently 21 tax exemptions available for OKU individuals, depending on specific conditions and qualifications.
The question posed inquired whether the ministry plans to provide tax exemption rebates for the purchase of local motor vehicles priced below RM45,000, for the targeted group of people with disabilities in the B40 and M40 categories.
Expanding on the topic, the Deputy Finance Minister II noted that the government already grants full exemption on vehicle excise duties for all OKU individuals and individuals with physical disabilities who are capable of driving, subject to certain conditions.
Additionally, he mentioned that considering various tax exemptions and rebates, OKU individuals in the B40 category are likely to be exempted from taxes.
Steven Sim concluded by stating that the existing tax measures are deemed sufficient in alleviating the financial burden faced by OKU individuals in the B40 and M40 categories.
Nonetheless, he assured that the government remains committed to continuous review and improvement of the existing tax policies, aligning them with the evolving economic environment.